Established in 1960 to produce 20,000 t/annum of Printing and Writing papers.

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Established in 1960 to produce 20,000 t/annum of Printing and Writing papers. Current capacity - 1,20,000 t/annum at Unit : Erode & 72,000 t/annum at Unit : Tirunelveli ISO-9001 / ISO-14001 / OHSAS / FSC certified company. Practising TPM & working towards GreenCo rating. Company has won several awards and recognitions in Energy Conservation, Environmental Excellence and Safety. To name a few : National Energy Conservation Award in Paper & Pulp Sector, Dec 2014 from GOI. Energy Conservation Award from IPMA in Jan 2015. In recognition of excellent work done on GHG reduction, SPB-Erode was chosen by UNIDO for first Pilot Plant Study related to GHG inventory. National Productivity Council (NPC) published Low Carbon Initiatives implemented by SPB in their Best Practices Manual on GHG reduction.

RAW MATERIALS PULPING PROCESS WASHING / BLEACHING White Liquor RECAUSTICIZER CHEMICAL RECOVERY EVAPORATOR Black Liquor PAPER MACHINE ROTARY LIME KILN Burnt Lime Lime Mud Green Liquor RECOVERY BOILER FINISHING / DISPATCH

REDUCTION IN SPECIFIC ENERGY CONSUMPTION (SEC) 0.69 0.67 0.65 0.63 0.61 0.59 SEC REDUCTION - PAT 0.681 8 % 0.630 7 % 0.585 50 49.5 49 48.5 48 SEC REDUCTION TOTAL ENERGY 50 2 % 49 2 % 48 0.57 47.5 0.55 2013-14 2014-15 2015-16 47 2013-14 2014-15 2015-16 SEC - TOE / T of Prod. SEC - GJ / T of Product

SEC IN COMPARISON TO BENCHMARKS Unique in its operation - SPB makes a very wide range of products in a wide range of basis weights. Global bench marking is extremely difficult. In comparison to national benchmarks, SPB is one of the leading energy efficient units. Entity Steam (t / t of product) Power ( KWh / t of Product) National Avg. 11-15 1500-1700 SPB-Erode 9 1547 Data source : TERI Energy and Environment Data Diary and Yearbook (TEDDY) 2014/15 SPB sets its own norms in relation to energy efficiency and emission intensity. Efforts on Energy conservation, Environment protection and Emission Intensity reduction is a continuous process involving all employees including contract labour in our organization. This has helped SPB achieve significant reduction in SEC on a sustained basis as seen in the previous slide.

INNOVATIVE PROJECT - 1 Conversion of Bubbling to Spouted AFBC Boiler with increased bed heating surface area for enhanced and efficient Steam & Power generation Description: In Spouted bed combustion the fuel is discharged through nozzles above the bed coils where the fuel is evenly spread over the entire cross section of furnace. Improvement over AFBC with under-firing arrangement as it eliminates frequent tube failures due to erosion. It can also be operated without Primary Air fan. BEFORE RETROFIT BUBBLING BED WITH SINGLE BED COIL DESIGN AFTER RETROFIT SPOUTED BED WITH DOUBLE BED COIL DESIGN FUEL DISCHARGE NOZZLE FUEL DISCHARGE NOZZLE DECK PLATE / BOTTOM WATER WALL DECK PLATE

Why it is innovative : Benefits Achieved : INNOVATIVE PROJECT 1 (CONTD) Spouted fluidized bed combustion Unique and first of its kind in Pulp & Paper sector & Cogeneration plants. AFBC boiler operating without PA fan - first of its kind. Increase in Steam generation Increase in Power generation through 21 MW STG 25 tph 6 MW Power saving due to Primary Air Fan stoppage 2000 KWh/day GHG Emission reduction 36000 tco2e Increase in combustion efficiency due to decrease in LOI 0.4 % Increase in Boiler availability - Replication Potential : Can be replicated by all industries.

Description: When the steam generation increased after implementing innovative project 1, a new boiler feed pump had to be procured. Instead an unique strategy was formulated wherein the control valve was modified to reduce the differential pressure. As a result, the existing energy efficient feed pump was deemed suitable for operation thereby deferring the investment for a new pump. Why it is innovative: Unique idea of achieving significant energy saving by redesigning the internals of the control valve. Benefits achieved : INNOVATIVE PROJECT - 2 Coal fired Boiler 10 - Station Power consumption reduction by integrating Energy Efficient Boiler feed Pump with Low Differential Pressure Control Valve Station power consumption reduction 5000 KWh /day Net power available for export GHG emission reduction 0.2 MW 2000 tco 2 e Replication potential: Can be replicated by all industries for their boiler feed pumps.

Use of DM water in place of Cooling Tower Water for enhanced dissipation of heat in 21 MW Generator Why it is innovative: Clean DM water improves the heat dissipation when used as cooling medium in the generator air coolers resulting in enhanced generator efficiency. The DM water is returned to the de-aerator at a higher temperature. Otherwise this heat would have been lost through the cooling tower. INNOVATIVE PROJECT - 3 EXISTING MODIFIED G G STEAM TURBINE STEAM TURBINE COOLING TOWER WATER IN COOLING TOWER WATER OUT DM WATER IN DM WATER OUT GENERATOR AIR COOLER GENERATOR AIR COOLER

INNOVATIVE PROJECT 3 (CONTD) Trigger for the Project: The energy wasted through the cooling tower and the fouling of generator tubes triggered the scheme development. Benefits: De-aerator LP steam consumption reduction GHG emission reduction 12 tpd 1100 tco2e Fouling of generator air cooler tubes is avoided - Winding temperature reduction. - Replication Potential : Can be replicated by Thermal power plants

ENCON PROJECTS AND SCHEMES WITH NO INVESTMENT(2015-16) Description Monetary savings (Rs. Lakhs) Energy Savings (Electrical) KWh Energy Savings (Thermal) t of steam Bagasse pulp mill Resource conservation through capacity utilization and process optimization. 39.0 4,23,188 4147 Coal fired boiler -10 - Primary air fan stopped 21.0 5,33,625 - Steam reduction through hot water generation from Slaker scrubber in Recausticizer. 18.0-3329 Wood Fiber line - Washer spray and additional Vat dilution pumps stopped by installing single high efficiency pump. 9.0 2,44,388 - Paper machine 5 - Tackle pattern of HT Refiners modified to welded bar. 8.0 2,03,656 -

ENCON PROJECTS AND SCHEMES WITH NO INVESTMENT (2015-16) (CONTD) Description Water treatment plant - 2 high efficiency intake well pumps are in operation. 3 rd and 4 th pumps stopped. Drinking water supply pump stopped for 18 h/day. Bypass line provided from colony drinking water line. Paper machine 5 Separator pump stopped. Condensate transferred using diff. pressure through control valve. Paper machine 5-1 Hood exhaust fan stopped by optimizing volume and temperature of inlet air. PM 1-4 stock preparation - Refiner water booster pump stopped. Monetary savings (Rs. Lakhs) Energy savings (Electrical) KWh Energy savings (Thermal) t of steam 12.0 3,12,775-10.0 2,60,245-3.0 86,838-1.7 43,500-0.6 18,000 -

ENCON PROJECTS AND SCHEMES WITH NO INVESTMENT (2015-16) (CONTD) Description PM 1-4 stock preparation- Fresh water booster pump stopped by implementing water conservation schemes. Monetary savings (Rs. Lakhs) Energy savings (Electrical) KWh Energy savings (Thermal) t of steam 0.4 11,450 - Total savings without investment 123 21,37,665 7476

ENCON PROJECTS AND SCHEMES WITH INVESTMENT(2015-16) Description Coal fired Boiler 10 Modification of Bubbling to Spouted bed with additional Bed & Super heater heating area. Investment (Rs. Lakhs) Monetary savings (Rs. Lakhs) Energy savings (Electrical) KWh Energy savings (Thermal) t of steam 1000 1171 3,36,00,000 - Coal fired boiler 10 - Control valve with lower differential Pressure integrated to energy efficient boiler feed pump. 2 34 8,50,000 - Yankee machine Dryer cylinder refurbishing. 15 6 1,70,000 2700 Coal fired boiler 10 - VFD provided for De-superheater pump. 5 6 1,47,000 -

ENCON PROJECTS AND SCHEMES WITH INVESTMENT (2015-16) (CONTD) Description Class IV vent Control valve was replaced with Class V valve for arresting steam passing in Recovery Boiler. Paper machine 5 - White water pump speed reduction using VFD. Coal fired Boiler10 and Recovery boiler - Heating surface of plate heat exchangers augmented for enhanced heat recovery Investment (Rs. Lakhs) Monetary savings (Rs. Lakhs) Energy savings (Electrical) KWh Energy savings (Thermal) t of steam 2 86 10,30,000 8233 4 11 2,86,000-3 3-654 Total 1031 1317 360,083,000 11,587

ENCON PROJECTS AND SCHEMES PLANNED DURING (2016-17) (2016-17) Estimated Energy Project Recovery Boiler 11 - Energy efficient Boiler Feed Pump with low DP Control valve Coal fired Boiler 10 - High Energy efficient Feed Pump with low DP Control valve Further improvement Paper machine (MF2) - Insulation and modification of steam line Bagasse pulp mill - Energy Recovery schemes in DO-EOP-D1 Stations savings (Electrical) KWh / day Estimated Energy savings (Thermal) t of steam / day 2000-1200 - - 5-12 Installation of Bark fired Heater - 70-80 Rotary Lime Kiln - Radiation heat recovery for feed water heating Coal fired Boiler 10 - Direct pumping of condensate to de-aerator 240 -

ENERGY MONITORING FORMAT MONITORING SYSTEM Shift-wise Monitoring using DCS Totalizers Daily Monitoring Using Consumption Report Generated by Power Plant Fortnightly Monitoring through Management Review Shift In- Charge & HOD HOD & President (Tech.) President (Tech.), Managing Director & Chairman

GHG INVENTORIZATION In recognition of excellent work done on GHG reduction, SPB was chosen by UNIDO for a Pilot Plant Study related to GHG inventory during 2015-16. It is our intension to continuously measure our GHG emissions and implement mitigation measures. 2.6 2.4 SCOPE 1 + 2 EMISSION INTENSITY 2.515 2.318 0.23 0.22 SCOPE 3 EMISSION INTENSITY 0.228 0.22 2.2 2 2.096 t CO2e / t of product 0.21 0.2 0.206 tco2e / t of prod. 1.8 2013-14 2014-15 2015-16 Mitigation Measures Modification of Coal fired Boiler to Spouted Fluidized bed combustion for enhanced HP steam generation Coal fired Boiler 10 - Power reduction by using energy efficient boiler feed pump Chemical Recovery HP Cogen Increased Green energy Generation Limestone & Coal/Furnace oil reduction in Lime Kiln Energy Conservation schemes 0.19 2013-14 2014-15 2015-16

ENVIRONMENT PROJECTS At SPB, sustained efforts are undertaken for environmental impact reduction by identifying the root cause and taking corrective action at source of non-conformity. Water Conservation Schemes Odour Abatement Backwater recycling in Paper machines 1,2 & 4 to replace fresh water. Reuse of Ultra Filtration & Reverse Osmosis rejects along with process water. Reuse of treated cooling water blow-down & filter backwash. Total Water saving : 5650 m 3 /day. In addition reduction in energy and effluent discharge was achieved. Alkali Scrubber for mitigation of NCG s arising from the foul condensate in the Evaporator. Concentrated and toxic compounds like reduced sulfur, turpentine etc. scrubbed for odour abatement and environment protection.

UTILIZATION OF RENEWABLE ENERGY SOURCE Chemical Recovery HP Cogeneration unit with Black Liquor solids firing ENERGY GENERATED THROUGH RENEWABLE ENERGY (000 GJ) TOTAL ENERGY CONSUMPTION (000 GJ) % SUBSTITUTION 3467 6788 51 SSI Self Sufficiency Index Internally generated RE SSI = ------------------------------------ * 100 Total Energy consumption 52 51 50 49 48 48 SSI (%) 50 51 47 2013-14 2014-15 2015-16

UTILIZATION OF WASTE Waste Material Lime Mud Slaker Grits Lime Sludge ETP Filter cake Liquid Effluent Discharge Chipper dust and Dry pith Bagasse pulp mill high BOD effluent and canteen waste Current Use Re-burnt in Lime Kiln to generate Lime for Caustisizing process. Used for cement manufacturing. Used for cement manufacturing. Used by local board manufacturers for manufacturing Packaging boards. Treated Effluent meeting CPCB discharge norms is used for irrigating Sugarcane plantations in the immediate vicinity. Used as boiler fuel at SPB Tirunelvelli unit & Ponni Sugars Ltd. Bio-methanation of waste and biogas generated used for cooking at guest house and staff hostel.

EMPLOYEE INVOLVEMENT AND TEAMWORK At SPB, we steadfastly recognize the value of team work in all our Energy conservation activities. Efforts on energy measurement and reduction is a continuous activity at SPB. All Energy consumption points - Measured in each dept. Daily performance evaluation - Based on allocated norms. Daily Energy consumption reports - Compiled and forwarded to each dept. Variance analysis and implementing corrective actions if necessary by Head of the department. Extensive On the job & Class Room training for employee capacity building Kaizens are given significant importance & recognized through awards. 1065 1000 500 860 855 0 2013-14 2014-15 2015-16 Employee Kaizens Implemented Class Room Training Monthly review meetings On the Job Training

ENCON IMPLEMENTATION METHODOLOGY ENCON Implementation Scheme All generation - Employees involved Initial Assessment Feasibility Analysis - HOD s Energy - Management Cell Implementation Project & - Technical depts. Awards & Recognition Senior - Management to employees

ISO - PREVENTIVE AND CORRECTIVE ACTIONS QMS (9001), EMS (14001) & OHSAS (18001) ISO INTERNAL AUDIT FINDINGS Dept/Section : Boiler & SRP (M) Auditee Name : Mr. T.R. Murthy, GM (Blr) & Mr. C.S. Radhakrishnan, AM (SRP-Mech) Date : 20.05.16 & 21.05.16 Auditee Name : Mr. V. Parthiban, AM (Syst) Boiler & Mr. M. Mohankumar, JM (Stores) SRP (M) Sl. No. Audit Findings (Standard, Clause No, Requirement, Failure and Evidence) Immediate Correction Root Cause of Non-Conformity Corrective Action to Eliminate Root cause of Non - Conformity Status / Target Date Verification of corrective action BOILER 1 Standard : ISO 14001:2004 Clause No. : 4.4.6 Requirement : Operational control (No Leak) Failure : Leak exist. Evidence : 1. Steam Leak 400/150 PRDS steam valve leak 2. Pipe line leak near C1 condense tank 1.150 psi steam line shut is required to arrest the steam leak 2.Corroded line will be renewed 1. Due to dead end of the line 2. Pipe line got corroded 1. Isolation of 400/150 PRDS to arrest the frequent stream leaks, comes under GreenCo approved project. Material procured. Awaiting for 150 psi shut 2. Corroded line was replaced 1.Completed 2.Completed Verified & found ok SRP (Mech) 2 Standard : ISO 14001:2004 Clause No. : 4.4.6 Requirement : No Leakages Failure : Condensate line Leak Evidence : Primary Fan SCAPH condensate line valve gland leak at ENMAS Boiler Steam valve gland was tightened Due to wornout of valve gland packing Gland packing will be changed. Requires stoppage Completed Verified & found ok 3 Standard : ISO 9001:2008 Clause No. : 5.4.2 Requirement : Oil consumption to be maintained within 20% per month Failure : Oil consumption gone up 21% during March-16 Evidence : PD Sheet Oil consumption is reduced during month of Apr 16 1% exceed due to limekiln 2B roller temp. high. Hence 60 tts oil was changed Kiln expert called for alignment of kiln rollers & alignment was corrected Completed Verified & found ok

REPLICATION ARISING OUT OF BEST PRACTICES SPB had identified selective vendors to share our best practices thereby enabling them to replicate & improve their energy efficiency Awareness Creation for stakeholders TPM training programs conducted by SPB Supplier s Meet on 02.03.16 at SPB Diesel Machine Works, Perundurai Supplier Evaluation through Audits PARTICULARS Improvement from Previous Years 10 Marks 15 Marks 20 Marks Water conservation 5% 8% 10% Power/ Steam Conservation 5% 8% 10% Waste reduction 5% 8% 10% ISO certification Nil Initiated Certified Projects Project One implemented initiated project Two projects Total 4 x 10 = 40 5 x 15 = 75 5 x 20 = 100 Initiative undertaken by our supplier through guidance provided by SPB Tray Dryer Flash Dryer Tray dryer replaced with flash dryer at Arroma Industries Ltd. resulting in a steam reduction of 14.5 %

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